Albanias general budget deficit narrows by 27.9% y/y in Jan-April.

By bne IntelliNews May 22, 2012
Albanias general budget posted a deficit of ALL 11.5bn (EUR 82.5mn) in Jan-April, down by 27.9% on the year, finance ministry data showed. In our calculations, the deficit accounted for 0.8% of the projected full-year GDP, down from 1.2% of GDP a year earlier. The improvement was due to a 2.5% y/y increase in revenues and a 1.6% y/y decline in budget expenditure. Tax revenue picked up by 3.1% y/y and compensated for the 4.7% y/y decline in non-tax revenue. Combined receipts from indirect taxes inched up by 0.4% y/y, suggesting a continued stagnation of domestic consumption. In particular, VAT revenues were up by 1.5% y/y, excise inched up by 0.4% y/y, while customs duties declined by 17.7% y/y. Receipts from social insurance contributions grew by 5.6% y/y on the back of rising health insurance and social contributions. On the expenditure side, the drop was due to a 29.3% decline in capital expenditure, which more than offset a 5.8% y/y growth in current spending. Within this, operating outlays recorded the highest growth, of 29% y/y. Last year, the deficit totalled ALL 36.9bn, which in our estimates was equal to 3% of GDP. The government plans to cut the deficit to 3% of GDP in 2012 and to below 2% of GDP in 2013.
General Budget, Jan-Apr, ALL bn
2011 2012 % y/y
Total revenues 103.7 106.2 2.5
VAT 34.9 35.4 1.5
Corporate profit 7.7 6.3 -17.6
Excise 10.3 10.4 0.4
Personal income 9.0 9.0 -0.1
National 6.4 9.2 44.0
Customs duties 2.2 1.8 -17.7
Total social contributions 19.4 20.4 5.6
Social insurance 16.9 17.3 1.8
Health insurance 1.7 2.6 50.1
Non-tax Revenues 8.5 8.1 -4.7
Total expenditures of which: 119.6 117.7 -1.6
Current 94.6 100.1 5.8
Capital 25.0 17.7 -29.3
Balance -15.9 -11.5 -27.9
Balance (% of GDP forecast) -1.2 -0.8
Source: Ministry of finance

Related Articles

Albania calls tender for supervision of sewerage project.

Albania has called a tender to select a company to supervise the construction and supplies for a sewerage system and waste water treatment plant in Velipoja area, the European Commission informed ... more

Albania's govt approves changes in concession agreement for Devoll project.

The Albanian government has approved changes in the concessionary agreement for the Devoll Hydropower cascade, which formally enables Austrian EVN to exit from the project, the cabinets press ... more

Albanian parliament panel endorses EUR 12.7mn EBRD loan for dam safety project.

The economy and finance committee of Albanias Parliament has approved a EUR 12.7mn loan from the European Bank for Reconstruction and Development (EBRD) to be used to fund a project for upgrading ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss